China has unveiled fresh measures to strengthen Hong Kong’s role as an offshore yuan financing hub, including establishing a new yuan funding facility for banks and companies and expanding access for mainland investors to invest in foreign-currency bonds in the city.

The People’s Bank of China (PBOC) and the Hong Kong Monetary Authority (HKMA) will offer a 100 billion yuan (US$13.6 billion) liquidity facility for banks to help their customers obtain funding for one, three and six months to support trade. The cross-border Bond Connect scheme will also be tweaked to deepen the market.

Source: SCMP